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Question
technology and economic growth quick check
what does an increase in labor productivity throughout the country imply, assuming all other economic forces remain constant? (1 point)
an increase in gdp with labor hours held constant
an increase in gdp due to an increase in labor hours
a decrease in gdp with labor hours held constant
a decrease in gdp due to an increase in labor hours
Labor productivity is calculated as output per labor hour. If labor productivity increases while labor hours are constant, more output (GDP) is produced. GDP is the total value of goods and services produced. So, higher productivity (more output per hour) with same hours means higher GDP.
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an increase in GDP with labor hours held constant